The price of gold, in sharp decline. The decision that caused the reaction of the international stock markets
Gold bars, Photo: Agerpres
Gold and silver prices fell sharply on Friday, after President Donald Trump nominated Kevin Warsh as the future president of the Federal Reserve (Fed), a choice perceived by the markets as a signal of stability and independence for the central bank, reports CNBC, taken over by News.ro.
At press time, spot silver was down about 14%, trading around $99 an ounce, having previously dipped below the psychological $100 mark. Spot gold lost about 6%, standing at about $5,060 an ounce, following an initial decline of almost 7%.
Futures followed the same trend, with near-term gold down more than 3% and silver for February down about 10%. The massive sell-off affected the entire precious metals complex: platinum lost more than 10% and palladium nearly 8%.
Gold crosses $5,000 for the first time in history
The effects of the appointment of the new head of the Fed
Trump officially nominated Warsh, a member of the Fed during the 2008 financial crisis, as the successor to current Chairman Jerome Powell. The market had recently anticipated a possible nomination of a much more “weighted” candidate, which fueled the rise of precious metals in recent months.
“The market interprets the nomination of Warsh as a signal of firm policy from the Fed,” said Krishna Guha of Evercore ISI, explaining that the new option could stabilize the dollar and counter scenarios of prolonged weakening of the US currency, a key reason for the correction in gold and silver.
Analysts noted that precious metals were supported in 2025 by an exceptional context: geopolitical tensions, the depreciation of the dollar, fears about Fed independence and massive investor positioning. But a change in sentiment can trigger sharp corrections.
The impact was also felt on the stock markets, with Europe's Stoxx 600 Basic Resources index down around 2% and shares in silver producer Fresnillo down around £39 a share after the metals correction.
On Wall Street, shares of miner Endeavor Silver were trading around $11.90 before the open, and silver ETFs were hit hard: iShares Silver Trust (SLV) was around $105 and ProShares Ultra Silver (AGQ) was trading around $399-400.
Gold and silver had record gains in 2025 of +65% and +150%, a trend that continued into 2026. But analysts say markets are vulnerable when positions become crowded. “When everyone is betting in the same direction, even good assets can suffer massive selling,” said Katy Stoves of Mattioli Woods.
Toni Meadows (BRI Wealth Management) noted that gold's rise to $5,000 “came too easily”, being facilitated by the weakening of the dollar and purchases by central banks, a trend that moderated recently. Silver followed gold's path, which explains the synchronized declines.
